The U.S. government’s drive to hobble China’s advanced chip capabilities, mostly focused to date on restricting exports of GPUs used for AI, has spilled over into software used for designing chips – electronic design automation.
Yesterday, EDA company Synopsys, Inc. (Nasdaq: SNPS) suspended its financial guidance for the third quarter of fiscal year 2025 and full fiscal year 2025 after the company received a letter from the Bureau of Industry and Security of the U.S. Department of Commerce informing Synopsys of new export restrictions related to China.
Synopsys said it is assessing the potential impact of the BIS Letter on its business, operating results and financial condition.
Synopsys joins Cadence and Siemens in being restricted by the Trump Administration from selling EDA software to China-based customers, according to a story in the Financial Times. Cadence was notified of the restrictions on May 23.
